FDs are part of which asset class?a. Debtb. Equityc. Hybridd. None of the above

Break Down the Problem

1. Identify the various asset classes mentioned (debt, equity, hybrid, etc.).
2. Determine the characteristic of FDs (Fixed Deposits).
3. Classify FDs under the appropriate asset class.

Relevant Concepts

• Debt: This asset class includes instruments that represent a loan made by an investor to a borrower.
• Equity: This refers to ownership interest in a firm, represented by shares of stock.
• Hybrid: These are securities that combine attributes of debt and equity.

Analysis and Detail

• Fixed Deposits (FDs) are financial instruments where the investor deposits money for a fixed period and earns interest on it.
• They are offered by banks and financial institutions and are considered low-risk investments.

Verify and Summarize

Given that FDs involve a return on deposited funds with relatively low risk, they are classified as a form of debt.

Final Answer

a. Debt